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Sip Training Project: A Project Final Report ON Edelwiess Capital Limited BY Mr. Anil Kumar MBA SECOND SEM (2008-2010)
Sip Training Project: A Project Final Report ON Edelwiess Capital Limited BY Mr. Anil Kumar MBA SECOND SEM (2008-2010)
A PROJECT FINAL REPORT ON EDELWIESS CAPITAL LIMITED BY MR. ANIL KUMAR MBA SECOND SEM (2008-2010)
A REPORT ON
Table of Content
Authorization5 Acknowledgement6 Executive summary...7 List of illustrations9 1. Introduction...10 1.1 Scope of the project.10 1.2 Objective of the project...11 1.3 Scope of the study11 1.4 Limitations12 1.5 Data collecting methods12 2. Economy Analysis.12 2.1 Change in the outlook. 14 2.2 Recent growth trends14 2.3 India Economy: Effects of the US Financial Crisis in India.15 2.4 Indian economy: Latest Figures17 3. Industry Analysis18 3.1 Future of Indian Financial market.19 3.2 Opportunites ahead20 4. Company analysis20 4.1 Evolution of the company..21 4.2 Organizational Stucture.22 4.2.1. Board of directors22 4.3 Financial performance23 4.3.1 Financial Statement..24 4.4 Business Overview.24 5. Details of the project.26 5.1 Work done till date.26 5.1.1 Tata motors Finance ...26
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Authorization
I, Anil Kumar, Enrolment No. IMIMBAC041F2008-2010, a student of Management in IMI INDORE, hereby declare that the project entitled client profiling and customer relationship management is the record of original work done by me and the matters enclosed has not been submitted for any other degree or diploma in University
DATE: _______________
Anil Kumar
Acknowledgment
I would like to record my sincere gratitude to Edelweiss Capital Ltd., Indore for giving me a wonderful opportunity to do a project on Client Profiling and Client Relationship Management for Summer Internship Program I would like to express my gratitude to those who are concerned with the processing of this project. I am thankful to my Company Guide Mr. Bimbsar Singh (Branch Manager), & Mr. Manish Nagarkar (Relationship Manager) for their valuable guidance in this project for Summer Internship Program. I also express my sincere gratitude to my faculty guide Prof. Ajay Jain (Faculty IMI-Indore) for guiding me all throughout the one and half months of my summer internship. I also thank the other staff members of Edelweiss Capital Ltd. - Indore who helped me whenever I needed guidance and help during my Summer internship program.
Executive Summary
The title of my project is Client Profiling and Client Relationship Management. It involves implementing tools and techniques of client profiling and client relationship management for generating revenue for the company. Project includes identifying the customer, gathering information about the customer and finally providing him/her with a product or service which is need driven and promoting a client-oriented product/service providing
successful client support, handling client complaints, building a long term relationship. The project reveals the importance of client profiling and client relationship management for generating revenues for the organization. I am profiling the employees of Mphasis (BPO Company) for Edelweiss Securities Ltd. As per my schedule for the purpose of profiling the clients I have used the primary sources of data which has been planned by the use of questionnaires. Employees were asked to fill up the questionnaire to facilitate client profiling.
Education Sector Client- CIIT, RKDF, RIT, Star Academy (College) I focus on Student & business men as well as employee. My client is almost student. Those students are pursuing MBA. They have not knowledge about stock market.
Retail Clients For the retail clients I focused on Employees of Mphasis,& Tele Perphormence which is a call centre in Indore. Mphasis, an EDS company, is a leading Applications Services, Remote Infrastructure Services, BPO and KPO services provider. We deliver real
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Identifying the prospective client Gathering information about client Promoting a client-oriented product/service Providing successful client support Handling client complaints Building a long term relationship
List of Illustrations
Fig. Particulars Number 1 Gender Distribution among respondents 2 Income distribution among respondents 3 Saving distribution among respondents 4 Awareness among respondents 5 Preference for various investment instruments 6 Awareness about Edelweiss
Page no. 32 33 34 35 36 37
1.Introduction
Relationship with customers has existed since the advent of trade and business. Companies that need customers in order to build a profit need to have a system in place that effectively and successfully manages the customer/client relationship. Client profiling and Client Relationship Management has become a strategic initiative in most companies today. Client profiling and Client relationship management enables an organizations capability to manage and nurture its one to one relationship with its customers. In order to generate clients and to maintain good relations with them organizations are realizing the importance of client profiling and client relationship management. Moreover companies are more attentive for relationship building due to growing competition to attract customers. 1.1 Scope of the project Client profiling involves identifying the customer, gathering information about the customer and finally providing him/her with a product or service which is need driven. The information could relate to age, gender, occupation, income, status, lifestyle, savings etc. After the process of client profiling comes client relationship management. This includes Promoting a
client-oriented product/service providing successful client support , client complaints, building a long term relationship. handling
Client Relationship Management systems are also important to the top management because it provides crucial data like customer satisfaction and efficiency of service by the frontline crews. Customer Profiler helps organization find new customers for the business. It will extract people and/or businesses that match the profile of the current customers. This will provide with a list of prospective customers
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2. Economy Analysis
The economy of India is as diverse as it is large, with a number of major sectors including manufacturing industries, agriculture, textiles and handicrafts, and services. Agriculture is a major component of the Indian economy, as over 66% of the Indian population earns its livelihood from this area. In Purchasing Power Parity GDP, the figure for India was 1.5 trillion US Dollars in 2008. The per capita income of India is 4,542 US Dollars in the context of Purchasing Power Parity. This is primarily due to the 1.1 billion population of India, the second largest in the world after China. In nominal terms, the figure comes down to 1,089 US Dollars, based on 2007 figures. According to the World Bank, India is classed as a low-income economy. Ranked by the exchange rate of the United States Dollar, the Indian economy is the twelfth largest in the world.
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The Indian stock market has fallen more than 40% in six months from its January 2008 high. $6b of foreign funds has flowed out of the country in that period, reacting both to slowing economic growth and perceptions that the market was over-valued. 2.1 Change in the outlook It is not all doom and gloom, however. A growing number of investors feel that the market may now be undervalued and are seeing this as a buying opportunity. If their optimism about the long term health of the Indian economy is correct, then this will be a needed correction rather than a downtrend. The Indian government certainly hopes that is the case. It views investment in the creaking infrastructure of the country as being a key requirement, and has ear-marked 23.8 trillion rupees, approximately $559 billion, for infrastructure upgrades during the 11th five year plan. It expects to fund 70% of project costs, with the other 30% being supplied by the private sector. Ports, airports, roads and railways are all seen as vital for the Indian Economy and have been targeted for investment. Further hope comes from the confidence of Indias home bred companies. As well as taking over the domestic reins, where they now account for most of the economic activity, they are also increasingly expanding abroad. India has contributed more new members to the Forbes Global 2000 than any other country in the last four years. 2.2 Recent Growth Trends in Indian Economy Indias Economy has grown by more than 9% for three years running, and has seen a decade of 7%+ growth. This has reduced poverty by 10%, but with 60% of Indias 1.1 billion population living off agriculture and with droughts and floods increasing, poverty alleviation is still a major challenge.
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GDP
IIP (General)
WPI Inflation
The 2007-2008 Indian Economic Survey has projected inflation to be just above 4% for 2008. However the rapid rise in food, oil and other commodities prices pushed inflation above 11% by July 2008. But with the global slowdown affecting the global demand and simultaneous downfall in oil prices has caused inflation to fall drastically. From the high of 13%, it fell down to 0.18% for the week ended 16th April2009. Indias inflation rate continued its southward journey after a short break and edged down to 0.48 percent for the week ended May 2.
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3. Industry Analysis
Analysis of Indian Financial Sector reveals that it is at present going through a phase of stable growth rate which is experiencing a upward swing. The rise can be maintained over a long period by keeping the inflation down. The financial sector in India has experienced a growth rate of 8.5% per annum. The rise in the growth rate suggests the growth of the economy. The financial policies and the monetary policies are able to sustain a stable growth rate. The reforms pertaining to the monetary policies and the macroeconomic policies over the last few years have influenced the Indian economy to the core. With sustained deregulatory measures, exposure to international financial markets and the introduction of new products and services, the Indian financial sector is charting an impressive growth path. According to global research data from Macquarie, India is the most preferred stock market in terms of portfolio allocation owing to current lucrative valuations and the government fiscal measures taken to boost liquidity in the economy. With sustained deregulatory measures, exposure to international financial markets and the introduction of new products and services, the Indian financial sector is charting an impressive growth path. According to global research data from Macquarie, India is the most preferred stock market in terms of portfolio allocation owing to current lucrative valuations and the government fiscal measures taken to boost liquidity in the economy. The market is also expected to undergo a structural transformation with organised players increasing their market share. As a measure to ease the
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The distributed financial gain of the venture capital funds is not taxed. The financial gains are taxed after the investors receive as income The have more insurance and banking products introduced into the market to broaden the spectrum which in turn would boost the growth of the sector Further nullification of the regulations have to take place in order to increase the competition and boost the growth of the financial sector to reach the US$ 51 billion mark
4. Company Analysis
Edelweiss is one of the leading financial services company in India. Its current businesses include investment banking, securities broking, and investment management. It provides a wide range of services to corporations, institutional investors and high net-worth individuals.
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The Edelweiss Group is a conglomerate of 31 entities including 28 Subsidiaries and 2 Associate companies, engaged in the business of providing financial services, primarily linked to the capital markets. It operates from 43 other offices in 19 Indian cities. Since its commencement of business in 1996, it has grown into a diversified Indian financial services company organized under agency and capital business lines operated by the Company and its thirteen subsidiaries. The Managing Director and C.E.O of the company is Mr.Rashesh Shah. Edelweiss Capital Limited (www.edelcap.com), incorporated in 1995, today has emerged as one of Indias leading integrated financial services conglomerates. The Edelweiss group offers one of the largest ranges of products and services spanning varied asset classes and diversified consumer segments. Its businesses are
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The Board comprises of four independent and two non-executive directors out of a total of eight directors, each of whom brings in his own expertise in diverse areas. The focus is on strong corporate governance. There is an Independent Risk Committee headed by an external director.
4.2.1 BOARD OF DIRECTORS
The Board comprises of four independent and two non-executive directors out of a total of eight directors, each of whom brings in his own expertise in diverse areas. The focus is on strong corporate governance. There is an Independent Risk Committee headed by an external director.
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4.3 Financial Performance at a Glance Edelweiss over the past few years has delivered strong operating and financial performance. It has a strong track record of high growth and profitability. Our revenues have grown at a 4-year CAGR of 149% while our net profits have increased at a 4-year CAGR of 143% upto March 08. As on March 31, 2008 Edelweiss Group Net worth stood at over Rs. 23 billion including minority interest, indicating a strong balance sheet. Equity capital is the primary source of funding for the company besides debt. The leverage as on 31st March 2008 is below 1:1 indicating the healthy position whereby the balance sheet can be further levered easily for improving the ROEs.
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4.4.2 Broking
Institutional Equities
Edelweiss has one of the leading institutional equities businesses in India backed by a large and experienced research team and a large and diversified client base. Intense servicing, seamless execution and innovative research products have helped Edelweiss build strong relationships with over 300 institutional investors, including FIIs and domestic institutional investors. Research coverage presently extends to over 200 companies across 19 sectors.
Private Client Broking
Edelweiss offers dedicated brokerage services to high net-worth individuals with a strong emphasis on building long-term relationships with clients. Product offerings
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Asset Management Alternative Asset Management focuses on advisory/management expertise for Private Equity Fund, India focused Multi-Strategy Fund, Real Estate Fund and a Bonds Fund. Recent Initiatives that have been announced include setting up an ARC and a Distressed Assets Fund. On the Domestic AMC side, Edelweiss Mutual Fund has launched two Debt Funds, one Liquid Fund and one ELSS Fund.
Treasury
The Treasury Operations in Edelweiss is similar to that of a Treasury in a Commercial Bank and focuses on liquidity management and yield optimization. This division has adopted a multistrategy/multi-book approach to diversify and grow its portfolio while imparting liquidity in the balance sheet. The Company follows a disciplined and conservative approach to cash management with emphasis on strong risk policies and capital preservation. Lending With a deep knowledge and understanding of capital markets, the Companys primary offering in the lending business includes products such as promoter funding, loan against shares, IPO financing, Loan against ESOPs etc. Its prudent financing norms and a conservative margin of safety ensures low or nil non performing loans. Financial Products Distribution
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5.1.3 Other retail clients Apart from employees of Tata Motors finance & Shanchi milk federation and Mphasis& Tele Perphormence retail clients were also generated thorough direct approach, data Collect our reference. Clients were acquired and retained through the following process:
Identifying the prospective client Gathering information about client Promoting a client-oriented product/service
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Providing successful client support Handling client complaints Building a long term relationship
INVESTMENT ACCOUNT
MUTUAL FUNDS
TAX PLANNING
5.2.1 Facilities included in investment account: It includes Mutual fund investment Annual maintenance cost free for two years Online portal- www.edelblue.com
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Various schemes of Investment Account: 1250 Plan: In this, customers have to pay amount worth Rs.1250. These charges are for account opening. And six month brokerage free, turnover 200000. Features: There is no minimum margin compulsory for investment. Brokerage charges- 0.045(Intraday), 0.4(Delivery) Advance Brokerage Plan: Cost of subscription Rs. 1250 Rs. 2450 Rs.4950 Rs.7450 Rs.9950 Brokerage Intraday/delivery 0.045/0.45 0.04/0.4 0.03/0.3 .025/.25 0.02/0.2 Validity 6 month 1 yr 1 yr 1 yr 1 yr Turnover 200000 1000000 2500000 5000000 10000000
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Free software
Free Personalized Service / Dedicated Fund Manager for your investment advisory
5.2.2 Benefits of the software: Online-Platform for Tax-Planning My Edelweiss Online-Platform for Direct Equity Investment- Equity Online Platform to Access Edelweiss Research (Crisil Rated P1 Grade ) - Research & Strategy The various schemes were also explained to us so that we can provide with the right scheme to right investor which suits there need.
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Primary Sources
Questionnaire Interviews/ Appointments
Secondary Sources
Website of the client company Database of the company rrR
The analysis of the data will be done with the help of the graphical tools.
5.4 Methodology
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the prospective customers of the Edelweiss Capital Limited Sample size - Survey will be conducted for 50-100 respondents who are the prospective customers of the Edelweiss Capital limited
Sources of data
Secondary data is provided by the company. Secondary data is also collected from internet, reference, journals and brochures.
40 35 30 25 20 15 10 5 0 male Female
Fig.1 Interpretation: Y-axis represents no. of persons and X-axis shows corresponding data of males and females. Out of these 50 respondents 38 were males and 12 were females.
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Fig.2 Y-axis represents no. of persons and X-axis represents income level
No. of persons 28 11 8 3
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Fig.3
Interpretation: Y- axis represents no. of persons and X-axis represents amount of saving. Saving level No. of persons Less than 3000 3000-6000 6000-15000 more than 15000 34 9 5 2
6.4 Number of people who invest out of 50 persons Do you Invest? No. of respondents who said yes- 41 No. of respondents who said no.- 9
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Fig.4
Interpretation: Y- axis represents no. of persons and X-axis corresponding no of persons who invest and who dont invest. Out of 50 respondents 41 invested their saving in any of the investment instrument.
Investment instrument
18 16 14 12 10 8 6 4 2 0 Bonds Insurance Shares Mutual funds Fixed deposits Investment instrument
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Bonds
2
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Insurance
Shares
Mutual funds Fixed deposits
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8 13
Options Yes No
No. of Respondents 6 44
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No. of Respondents
Fig.6
Interpretation: Y- axis represents the no of respondents who use Edelweiss services or not. X-axis represents corresponding response of yes or no.Out of
41 respondents who invests only 6 respondents uses Edelweiss services. So we can infer that penetration of Edelweiss services is very low.
8. Conclusions
After going through all the aspects of client profiling and client relationship management, it can be inferred that client profiling and client relationship management is very much necessary to survive in the fiercely competitive market. In order to give clients the best product and maximum satisfaction, it is indispensable to do their profiling first. Customer Profiling helps in finding new customers for business. It will extract people and/or businesses that match the profile of our product. For example, we wouldn't try to sell a fur coat to an animal activist or a pack of cigarettes to a health advocate. Therefore client profiling should be first thing to be done by Edelweiss before approaching any of the client. Customer profiling is one of the best prospecting tools. By applying profiling techniques, you can fully exploit data about customers buying patterns and behavior and gain a greater understanding of consumer motivations. Customer Profiling helps to dramatically increase response rates of your marketing campaigns by micro targeting the right customer with the right product. I applied the concept of client profiling and I used it to profile the employees of Mphasis Tele Perphormence. Accordingly I approached them with the product that suits them best. Client Relationship management also helped me to build long term relations with my customers. This kind of harmonious relationship will further bring new business opportunities to Edelweiss in the form of new clients. Through continuous follow up of clients I could built personal and healthy relationship with my clients. With the economy showing signs of consolidation and recovery, it is now even more important for Edelweiss to attract new customer as the market is expected to do well in coming months. To do so it is of utmost importance for Edelweiss to use client profiling and client relationship management.
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9. Recommendations
During my project I came across certain aspects about Edelweiss. These aspects are as follows: More accessibility- Edelweiss has only one branch in Madhya Pradesh. In order to increase its reach Edelweiss needs have more no. of branches so that as much as clients can be converted into new business opportunities. More promotional activities- Since Edelweiss has recently started its retail broking business; it needs to aggressively make itself aware to the common public. Although Edelweiss has done well in HNI sector, but to do well in retail sector it needs to do more of the promotional activities. Customized Seminars for working persons As per my experience with Tata Motors Finance & Shanchi Milk federation prospective clients are busy in their own job. Most of the retail clients are either employed or professionals who dont have time to think about investment planning. Edelweiss needs to cater to their needs by arranging seminars on weekends, so that prospective clients can come and gain insight about the company and investment avenues. Effective sales time- Since market conditions is improving its important to capture those clients who are not active due to bad financial market. For this Edelweiss needs to have more dedicated and effective sales team.
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10. Attachments
Questionnaire
1. Name: 2. Age: 3. Gender: 4. Mobile: 5. Company: 6. Designation: 7. Email: 8. Income:
9. Savings:
Rs.3000 Rs.6000
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BONDS
INSURANCE
SHARES
MUTUAL FUNDS
FIXED DEPOSITS
YES
NO
Date:
signature
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11. References
www.edelcap.com www.economywatch.com www.indianeconomy.org www.business.mapsofindia.com www.indiaeconomystat.com www.ecofin-surge.co.in www.wikepedia.com
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